Trade-Ideas LLC identified Arrowhead Research ( ARWR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Arrowhead Research as such a stock due to the following factors:

  • ARWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • ARWR has traded 114,665 shares today.
  • ARWR is trading at 3.34 times the normal volume for the stock at this time of day.
  • ARWR is trading at a new high 3.09% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARWR with the Ticky from Trade-Ideas. See the FREE profile for ARWR NOW at Trade-Ideas

More details on ARWR:

Arrowhead Research Corporation, a biopharmaceutical company, develops novel drugs to treat intractable diseases in the United States. Currently there are 2 analysts that rate Arrowhead Research a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Arrowhead Research has been 1.1 million shares per day over the past 30 days. Arrowhead Research has a market cap of $206.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.37 and a short float of 21.6% with 15.80 days to cover. Shares are down 47.3% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Arrowhead Research as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, feeble growth in its earnings per share, generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income has decreased by 10.3% when compared to the same quarter one year ago, dropping from -$22.43 million to -$24.74 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ARROWHEAD RESEARCH CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ARROWHEAD RESEARCH CORP reported flat earnings per share in the most recent quarter. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ARROWHEAD RESEARCH CORP reported poor results of -$1.61 versus -$1.23 in the prior year. For the next year, the market is expecting a contraction of 4.3% in earnings (-$1.68 versus -$1.61).
  • ARWR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 40.58%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to -$12.02 million or 10.09% when compared to the same quarter last year. Despite a decrease in cash flow ARROWHEAD RESEARCH CORP is still fairing well by exceeding its industry average cash flow growth rate of -42.36%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.